How the Calculator Works
Most car budget calculators give you a single number based on your salary and a generic interest rate. They ignore the costs that actually make or break your monthly finances. Ours is different.
Real Take-Home Pay
We calculate your actual monthly income using the latest 2025/26 UK tax bands and National Insurance rates — not a rough estimate.
True Disposable Income
Your rent, bills, and existing loans are deducted to show what you actually have available — not what your payslip says.
Three Budget Tiers
Comfortable (15%), Stretch (25%), and Maximum (35%) — so you can decide what feels right for your situation, not what a salesperson tells you.
How Much Should You Spend on a Car?
If you've spent any time reading forums or personal finance advice, you'll have seen a dozen different rules about how much to spend on a car. Some say never finance. Others say never spend more than half your salary. The advice is contradictory and confusing.
After analysing how real UK car buyers think about affordability, the most practical framework is the 15/25/35 rule applied to your net monthly income after deducting your fixed commitments:
Comfortable — 15%
Maximum financial breathing room. Leaves plenty for savings, emergencies, and everything else. You'll be looking at well-equipped smaller models or excellent used options.
Stretch — 25%
A solid middle ground where most buyers land. Opens up a wider range of new vehicles, especially when manufacturer discounts bring premium models within reach.
Maximum — 35%
The absolute ceiling. Only consider this tier if you have no other significant debt and a healthy emergency fund. You must factor in ALL ownership costs at this level.
Your monthly car payment is only one part of what you spend on a car each month. Insurance, road tax, fuel, servicing, and depreciation can easily add £200–£400 on top. Our calculator factors all of this into a single total cost of ownership figure so there are no surprises.
What Car Can You Afford? A Realistic Guide by Salary
Rather than abstract percentages, here's what the numbers actually look like at common UK salary levels. These figures assume standard tax and NI deductions.
| Gross Salary | Monthly Take-Home | 25% (Stretch) | 25% (Stretch) | 35% (Maximum) |
|---|---|---|---|---|
| £25,000 | £1,800 | £269/mo | £448/mo | £628/mo |
| £30,000 | £2,100 | £314/mo | £523/mo | £733/mo |
| £35,000 | £2,400 | £359/mo | £598/mo | £838/mo |
| £40,000 | £2,700 | £404/mo | £673/mo | £943/mo |
| £50,000 | £3,300 | £494/mo | £823/mo | £1,153/mo |
These figures represent your car payment budget only. Remember to leave room for running costs. Use the calculator above for your exact, personalised figure.
Best Cars You Can Afford Based on Your Salary
The question everyone asks is: "What car can I actually afford?" The answer depends on more than just your salary — your outgoings, deposit, and whether you're buying on finance all play a role. But salary is the starting point, and here's a realistic guide to what opens up at each level.
Use the calculator above for your exact personalised figure, but these recommendations will give you a strong idea of what's within reach — especially with Motor Source Group discounts applied.
Best Cars on a £20,000–£25,000 Salary
On a salary of £20k–£25k, your take-home pay sits around £1,500–£1,750 per month. After typical rent and bills, a comfortable car budget lands between £150 and £250 per month. That might sound limiting, but with the right discounts it opens up some genuinely impressive new cars. At this level, you want low running costs, strong reliability, and good residual value.
Dacia Sandero
The UK's most affordable new car, but far from basic. The latest Sandero comes with a modern interior, decent tech, and impressively low running costs. Ideal for anyone who wants a brand-new car without stretching their budget.
View Deals →Citroen C3
A stylish small car that punches above its weight. The C3 offers distinctive design, a comfortable ride, and a surprisingly spacious cabin. Low insurance groups make it particularly attractive for younger or first-time buyers.
View Deals →MG ZS
An SUV on a small-car budget. The MG ZS offers generous equipment levels, a 7-year warranty, and a spacious interior that rivals cars costing significantly more. A strong value choice for families or anyone who needs more space.
View Deals →Best Cars on a £25,000–£35,000 Salary
This is the salary bracket that covers a large proportion of UK keyworkers — nurses, teachers, police constables, and junior civil servants. Take-home pay ranges from £1,750 to £2,300, and with average outgoings you're typically looking at a comfortable car budget of £250–£400 per month. This is where the choice gets genuinely exciting, moving past budget models into well-equipped mainstream cars from established manufacturers.
Volkswagen Polo
One of the best small cars ever made. The Polo offers premium build quality, a refined driving experience, and strong residual values. It feels like a much more expensive car from behind the wheel, and discounted pricing makes it even more compelling.
View Deals →Skoda Karoq
A family SUV with one of the best space-to-price ratios in the market. The Karoq shares its platform with the VW Tiguan but comes in at a lower price point with cleverly designed storage, flexible seating, and a refined ride.
View Deals →Ford Puma
One of the UK's best-selling cars for good reason. The Puma combines crossover styling with genuinely fun handling, hybrid efficiency, and a clever MegaBox boot. Practical enough for families but engaging enough for driving enthusiasts.
View Deals →Best Cars on a £35,000–£50,000 Salary
At this level — covering senior nurses, experienced teachers, police sergeants, and mid-career professionals — your take-home is roughly £2,300–£3,100. After outgoings, a comfortable budget opens up from £350 to £550 per month. This is where you start accessing premium brands and larger, better-equipped models. Electric vehicles also become a genuinely viable option here, with lower running costs offsetting the higher purchase price.
Volkswagen Tiguan
The benchmark family SUV. The Tiguan delivers a premium cabin, strong safety credentials, and a choice of efficient engines including plug-in hybrid. It holds its value exceptionally well, making it one of the smartest buys in its class.
View Deals →Hyundai Ioniq 5
An award-winning electric car that makes the switch to EV feel effortless. Ultra-fast charging, a spacious flat-floor interior, and one of the longest ranges in its class. Running costs can be over £1,000 a year less than a comparable petrol car.
View Deals →Audi A3
Your entry point into Audi ownership. The A3 combines prestige with practicality — a premium interior, refined driving dynamics, and strong brand residuals. With a Motor Source Group discount, it becomes surprisingly affordable at this salary bracket.
View Deals →Best Cars on a £50,000+ Salary
With a salary above £50,000 — covering consultants, senior military officers, headteachers, and senior civil servants — your monthly car budget comfortably exceeds £500. The full range of mainstream and premium models opens up. At this level, the Motor Source Group discount has the biggest absolute impact, with savings of £5,000–£8,000 or more common on premium models.
Audi Q5
The sweet spot in the Audi SUV range. The Q5 delivers genuine luxury without the bulk of a full-size SUV. Quattro all-wheel drive, a beautifully finished interior, and enough space for a growing family. One of the most popular choices among higher-earning keyworkers.
View Deals →Lexus RX
Lexus is consistently rated as one of the most reliable car brands in the world, and the RX showcases why. A whisper-quiet hybrid powertrain, sumptuous interior materials, and legendary build quality. A car that rewards long-term ownership with minimal running costs.
View Deals →Genesis GV70
The brand that's quietly redefining luxury. The GV70 offers a level of standard equipment that German rivals charge thousands extra for, including a 5-year unlimited-mileage warranty. Outstanding value at this price point, with a driving experience to match.
View Deals →New vs Used: Which Makes More Financial Sense?
The default advice has always been "buy used and save." In many cases that's still sound, particularly if you're on a tighter budget or prefer to buy outright.
But the maths has changed. When you can access genuine manufacturer discounts through Motor Source Group, the price gap between a new car and a 1–2 year old used example narrows considerably. Factor in a full manufacturer's warranty, latest safety technology, better fuel efficiency, and more predictable servicing costs, and buying new starts to look genuinely competitive over a 3–5 year ownership period.
Cash or Finance: What Works Better for Your Budget?
This is one of the most debated topics in any car buying community. Some people will only ever buy with cash. Others prefer to spread the cost and keep their savings intact.
There's no universally right answer — it depends entirely on your personal financial situation. Buying outright means no interest charges and no monthly commitment. Spreading the cost can mean keeping your savings available for emergencies while driving a newer, more reliable car. Our calculator doesn't push you either way — it shows you both options so you can compare.
Exclusive Savings for Public Sector & Keyworker Staff
If you work in the public sector, there's an additional factor that can shift your budget significantly. Motor Source Group provides verified, exclusive discounts for NHS staff, Armed Forces personnel, police officers, teachers, fire and rescue service workers, prison service officers, and civil servants.
These discounts — typically saving £1,000 to £8,000+ off the recommended price — are negotiated directly with manufacturers and apply on top of any existing offers. Over 100,000 keyworkers have already saved with us.
Could an Electric or Hybrid Car Save You Money?
Running costs are where electric and hybrid vehicles make their strongest case. An electric car costs roughly 4–5p per mile to charge at home compared to 1518p per mile for petrol. Over 10,000 miles a year, that's a saving of over £1,000 annually on fuel alone.
When you factor in lower servicing costs and reduced road tax, the total cost of ownership for an EV can be lower than a comparable petrol car over 3–4 years. Our calculator adjusts running cost estimates based on your fuel type preference and annual mileage.
